Arbitration is an alternate way to resolve disputes without having to go to court. Instead of a judge, an intermediary renders a final decision. And unlike a trial decision, which can be appealed, a decision may be binding.
One of the main benefits of arbitration is privacy. Disputes settled through arbitration will not be heard in a public court. This means any information disclosed during the proceeding is not available to the press or any outside parties. Another benefit is speed. Because the arbitration process is less formal than a court proceeding, disputes can be resolved much more quickly. Finally, arbitration is more likely to produce mutually beneficial results. Unlike a judge, an arbitrator is free to work out compromises that are not always possible within a strict reading of the law.
On the other hand, the two parties generally have only one opportunity to resolve the dispute in their favor. The one-shot aspect of arbitration can make it complicated and costly because both parties want to ensure they have the best attorneys and experts on their side.